TOKYO - A former Japanese intelligence chief was arrested Thursday on suspicion of defrauding a Korean group in a property sale.

Shigetake Ogata, a lawyer who once headed the Public Security Intelligence Agency, allegedly colluded with Tadao Mitsui, the former president of a real estate company, and Koji Kawae, a former bank official and company executive, Kyodo News Service reported.

The property transfer involved the Tokyo headquarters of the General Association of Korean Residents of Japan, or Chongryon, a group that supports the North Korean government.

Prosecutors began the investigation suspecting that Ogata was collaborating with Chongryon in an effort to prevent the seizure of the building by creditors. But they now believe he cheated Chongryon, which planned a legitimate sale, by claiming to have a buyer and then transferring the ownership without paying the group, the news service said.